Cheap coal ignites energy battle

Coal is no longer a dirty word for some. It’s the low-cost fuel of choice.

Currencies are not the only asset at war. Energy too is engaged in a race to the bottom, which is producing unexpected results including the restoration of coal as the world’s preferred low-cost fuel for producing electricity.

It’s too early to tip coal stocks as a buy, mainly because there is the potential for a fresh round of government interference in the market. But demand for coal is rising in Europe and the US, and it remains strong in Asia.

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